First Gulf Bank: A glittering performance for the first half of 2006

This is an impressive 61% increase in profits compared to the same period of last year.

Commenting on this impressive performance, Andre' Sayegh, CEO, First Gulf Bank said the key to the bank's success and consistent high levels of performance is revenue diversification. Revenue diversification across various sectors of the economy is in line with the bank strategy to ensure continuous earning stability and growth.

Mr. Sayegh further added, 'The bank's core business is very solid and remunerative, but most important, First Gulf Bank has laid the foundations for future growth potential by focusing on Merchant Banking activities as well as Structured Investment products. "We are beyond Banking, we are aiming towards becoming a full fledged Financial Institution focusing on UAE opportunities and beyond"; Sayegh added.

Total assets increased to AED 33.8 billion in June 2006 up from AED 26.3 billion in December 2005 an increase of 29%. Loans and Advances increased to AED 19.7 billion up from AED 13.6 billion, while deposits rose to AED 20.3 billion up from AED 17.3 billion. Earning per share for the first six months was AED 0.60. Profitability ratios are very healthy, the annualized return on average equity stands at 17.7% and annualized return on average assets at 5.0 %.

Expressing his delight with the result, Mr. Sayegh continued,

'We are extremely satisfied with these results. Our outstanding financial performance is a reflection of our vision and commitment of maximizing profit for our shareholders, while delivering exceptional service to our customers. We shall stay focused on the task that lies ahead... of taking this vision even further.'

First Gulf Bank will continue on this path of progress and growth, further consolidating its presence through expansion of its business and operations in the UAE and abroad. We plan to add four more bank branches in the UAE this year, taking our total emirates-wide branch network to 15. First Gulf Bank, for the first time, will be operating in the Emirate of Ras Al Khaimah."

The belief in innovation, quality, customer service, team spirit and integrity has led First Gulf Bank to tremendously expand its business operations over the last years and increase its returns and shareholders earning. It also continues to raise service standards, while simultaneously investing in technology, systems and people

Today First Gulf Bank is recognized as a world-class organization committed to maximizing shareholders, customers and employees value.

Believing in building relationships based on trust and mutual respect that prioritize customer care, First Gulf Bank endeavors to exceed client expectations by offering innovative banking solutions, converting challenges into opportunities, contributing to the community and "Making a Difference".